7-Eleven sets P2-B plan for expansion

MANILA, Philippines - With the country’s economic prospects showing relatively high rates for continued growth, Philippine Seven Corp.(PSC), the exclusive local licensee of convenience store chain 7-Eleven, ramps up its expansion targets by allocating a budget of P2 billion this year.

According to PSC business development division manager Francis Medina, the budget allocation will cover the opening of 300 new outlets, renovation of existing stores, additional equipment and logistics, among others.

Medina said that for the first quarter of the fiscal year, 38 franchise outlets have been opened in various locations, namely NCR, North and South Luzon, Cebu, Bacolod and Iloilo.                 

Seeking to drive significant growth in other key areas of the country, PSC is also bent on capturing bigger, if not solo, market share in other locations outside the metro, as the planned expansion is heavily concentrated in Visayas and Mindanao - specifically Davao and Cagayan de Oro in the next years.

 â€œThe possibilities for rapid expansion are excellent in these areas as they have potential markets. Mindanao is still under study, but if approved, the first outlet will open by 2015,” said Medina. “So far, the total number of franchise stores is at 730, and the target number of stores to be opened is always achieved every month. But even with these positive outcomes, we are never complacent in keeping our current leadership standing,” he added.

Apart from leveled up store openings, PSC is also aggressively expanding 7-Eleven’s in-store marketing and product portfolio, one of which is the Everyday Rewards Card -- a loyalty card which allows patrons to earn one point for every P50 purchase (single or accumulated). “Customers may redeem exciting products through the points earned. The response was overwhelming when it was launched late last year,” said Medina.

7-Eleven also diversified its proprietary product lines by rolling out Chef’s Creations gourmet on-the-go meals by chef Claude Tayag. The restaurant-quality quick meals kick-started the company’s initial convenient Filipino food specialty offerings.

Although the company admitted having to face concerns such as tough competition, changing shopping trends and geographical location, PSC is very much optimistic as 7-Eleven, which remains the undisputed convenience store leader in the Philippines, still sees plenty of room for growth.  

 â€œOne of the challenges of 7-Eleven is competition as more C-store competitors are coming in. But being the leading retail convenience store innovator, the name itself is deeply favored amongst other competitors. We are confident that through strategic store expansion we can penetrate and capture the most market share,” Medina concluded.

Now with 1,102 stores nationwide, 7-Eleven remains the top convenience store chain in the country.